let's show you what's going on with the market dow jones is up higher and nasdaq is up 51 points and the s&p 500 is up about 18 points. make sure you join us tomorrow now go hang with the gang on "squawk on the street. begins now ♪ good wednesday morning, welcome to "squawk on the street," i am carl quintanilla with jim cramer. and david faber in new york city we'll talk to john malone and gregg maffei oil is red for the year trying to catch a bit today

our road map begins with crude in a bare market macy's is boosting its forecast and expecting a strong holiday season downgrade for apple and iphone sales estimates. >> futures extend their game stocks head into today's session with the dow having lost more than 900 points over a three-day period it is always a thousand points from thursday's highs. now we got oil and investment grade on people's radar. >> i think the notion of the year's over has just taken over. i think it is a mistake. beginning thursday as my friend william says 33 times out of 33 times, home depot had gone up over the next ten days starting thursday that was a great conference call every analyst hated it it is a metaphor for the gluten

right now. here is a company does well when gasoline goes down it is a big component. they correct the address tariffs on the conference call it encompass everythied everytht people are scared of it was a level that we have not seen >> the home depot conference call >> yes, they were throwing eggs at these guys like they never handled any sort of dewhurivers. one point they're talking about buy backs and it is increasing and it is a giant amount that they are buying. they want to know about why the residential housing market finally i think they burnt their

energy at the end of those calls. i think jeff is going to see the same thing at macy's i was going back with jeff this morning about tariffs an gasoline no, he wants to talk about how sales are going to be great. >> will people care? stocks are up this morning it will be another test case >> it will you have to do what the great does he literally says okay, here is ten negatives. we had a good quarter and then the analysts were speechless it was nothing, it was congratulations. these ceo had to do what fabrisio did i am not listening to their conference calls >> david, it is going to be interesting to get from you a sense of what malone says knowing his ability to see around tight corners >> yeah, listen, a lot of

investors do in terms of getting his view of the overall ecosystem which he played for so long one of the pioneer, the linear business which changed so dramatically which we talk about so often we hit a lot of topics on the interview and we'll share a little bit on disney we'll talk about charter and the future there and the bigger picture so many these companies are dealing with of how they distribute by and programming and attract viewers make sure they are staying with him whether platform that's building distributions or contents or both always good to sit down with them we went about an hour. i don't know how we do that every time mall lo malone likes to talk and i like to listen. >> we have to hear about the

death star it was a term that john co-- the three headquarters and the notion that there is not anything, we rule the earth. i want to know if their dinosaurs -- we are starting to get a lot of negative commentary or whether amazon is absolutely powerful but everyone is kind of cuddled. >> we did not use the word death star john, you did not even use death star, jim is going to be disappointed my sense is at least in his mind and you will hear some of it that there is no demolition. one thing we did hear from

malone and maybe everyone out doing roku that's interesting to keep in mind >> roku has been in free fall. that's the missing ingredient. >> you are welcome i am happy to provide it >> here is a little tease if you want to call it that we did spend a lot of time talking about what is the most important effort being made to direct consumer. we talked about it all the time, it is disney transforming the company, once they complete the fox deal i did ask malone his thoughts on whether or not disney will be able to succeed in this very important effort >> all throw hail mary passes, they're disrupting the studios and architecture and going up for talent and bidding against each other for anything that's

unique this is going to be a food fight for a while. if disney gets in the middle of the food fight, they have to live up in their brand in terms of what they deliver they got to figure out how to make it some what unique their content has been out there forever. people are used to getting it and not paying for or not understanding that they're paying for it. >> right, right. >> to make a transition and the question is how much paying are they going to suffer pulling back rights from existing distribution so that they create this appetite or starvation for their brand and their content so when they offer it as a premium, direct consumer service, people are willing to say i should pay for it now >> and guys that goes back to the question that we have been asking when it comes to disney, what's

it all going to cost and john was sort of applying a bit on that on the evolving world in terms of that food fight he's talking about where so much money is being spent for those who create the con at the present titentcontent. we are talking about the possibility of 2019. that'll be something, david. >> bezos did get the tabloid line today here is the daily news, the only thing that got us more play on the cover of the journal is oil. the real estate they gave to crude is impressive. >> about time. >> this is probably the bottom and everybody is suddenly barish

on oil >> i think amazon is doing something. you are not able to make the changes. you will start blowing on the same clogs and kids start to go to the same school and you know the parents and know the kids. it becomes kind of a situation of where you are too -- you go to new york and washington, you can start all new, new people. you can start replacing people one of the things that america does wrong is we have company town i like the idea. the proctor and cincinnati you can't get rid of people once you start being integrated with their family and clubs and schools. i think amazon is doing this right. yes, they get a benefit. people don't understand the power of the idea that you're friends and what it means in the international world. i think he understands that.

i think he uniquely understand that he's gotten two little town >> you are not addressing t the -- i mean the market cap, their profitability verses the subsidies? >> how much do they need do they get any at all >> i think that people can alleviate this area. the two areas they picked are not jobs struck. had they gone to other area, it would have had an impact we don't need to pay these guys. the answer is they don't they absolutely don't. amazon should pay here they're using services i hope they have the big tax pace i hope they pay. >> what's the matter amazon is going to be dramatic tax. david, you have been on the number seven for heraven sakes $10 billion in the incremental

tax revenue. >> that's good you got to write them a check. this is the city that needs - >> i don't know -- for a city that has $90 billion budget. i am talking about our city, new york which is the third largest in the country after the california estate of new york. i say we need as much tax reiff n revenue as we put our hands-on you are going to take the tax increase every time. one thing i would say is don't forget they burn through a lot of employees at amazon i am not just talking by the way about warehouse workers. it is a very hard fairly high pressure place to work i think that has been established and been through the work that we did sometimes back. more recently and speaking of people who have worked there the 25,000 jobs that they create

here, i am sure those first 25 it is not going to be the same 25,000 after ten years, it still holds it, that's for your. >> fair enough i am just saying it is really hard to hire here and everybody knows. it is a talent pool and it is so exploited. pittsburgh, chicago, we jus just -- we are bidding up people and not like san francisco which is insane. the second greatest bid up i had not mentioned ge >> 92 million shares in 23 as long as they own 50% or more, don't we have to call it a ge company? the headquarters -- i have not talked to him. he's your guy. >> okay. the headquarters what is it doing up there?

it is not a large -- culp is not a big corporate guy. i think he made it clear on the interview on monday. he's the guy coming in and say hey, we want to be as close to the customers as possible. what do they have in d.c.? incredibly small root of employees that they so-called headquarters when he ran that conglomerate >> we'll talk more of ge when we come back, quarterly results from tilray and canopy we'll talk to the ceo. take another look of the premarket here, we'll get to those apple calls and a little controversy of boeing. don't forget powell speaks to us tonight. is he going to dial any of that back when we come back

see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade so they say that ai will put the future in the palm of our hands. that's great. but right now you've got your hands full with your global supply chain. okay, france wants 50,000 front fenders by friday. that's why you work with watson. i analyzed thousands of contracts and detected a discrepancy. it works with procurement systems you already use to help speed up distribution without slowing down your team. frank, tell fred full force on those french fenders. fine. fine. fantastic. for ai that knows your industry, choose watson.

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from apple from 240 down to 225. asp are not going to cut it anymore. >> noii am not gong to be systematic i have $100 bet on who downgrades it next this is right out of the house >> all right how many choices do i have >> all the others are already picked by my staff >> who do you have >> i have key. >> i have web bush you get $100 this is what the analysts do wow, i got to downgrade it because that guy did i don't think the quarters can be that bad. do you think luca did not know about these things november 3rd the supply chain closes down. the higher phones absolutely

have greater gross margins i think guggenheim knew about the lower. this is not repertory. corvo misses a lot it is an consistent company. i am tired of these analysts how about singles day? it turns out to be an amazing day. did you know amazon and apple announced a deal during this period of massive downgrades they hear other people doing it. it is that bad that's why it is 100 bucks on web bush >> i got key, david, it was guggenheim and ups today and yesterday was goldman. davis going to get morgan stanley which is the least likely to downgrade. one of my guys got barclays. they're very weak candidates can you imagine the fear among

the people >> are they? >> i had the eagles. let me give you morgan stanley, you can pick it right out of here tim cook knows this is how they are doing it i am just trying to front run it >> that's katy, right? >> i am going to let tim cook have katy. that's how they are doing it they're going home to their spouses and saying oh -- >> david, the guggeneim note says asp are up. it is going to take some time now. they argued for the market to digest that. >> how about the service revenue, does it matter? what does john malone say about

that ir. >> that being a key focus for them i think whether it would be with other programmers or including it somehow in their distribution system but he did indicate that they helicopter to continue to adding that as a key of service area revenues source for them as they move deeply into the home we'll hear what he had to say. i can't say i have much more because we kind of moouved onto other topic. >> the app store is the key to the next level when she raise your price target before this psatsunami of downgrades it will have impact on service revenue years from now you are talking about an inflection opponent. >> people should read her note it is so positive, maybe they

can't. it may hurt their feelings >> jim, we'll get to apple we'll get your "mad dash" and count down to the opening bell in a moment. getting some nice tail winds here well off the lows tonight. back in a minute to examine investment opportunities firsthand. like e-commerce spurring cardboard demand. the pursuit of allergy-free peanuts. and mobile payment reaching new markets. this is strategic investing. because your investments deserve the full story. t.rowe price. invest with confidence. that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org.

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let's get our "mad dash. canada goose >> this is the biggest, now thanksgiving day talking about 40% in earnings and revenues

direct consumers are incredibly strong they still have only 11 stores they're opening a new one. they got a cold room they are doing this and china is selling well they have a lot of clothes that when it is frigid temperature, think about it outside natural gas of $4.50 this is what you buywhen it is cold how do they get a lot of the sales? people surf. oh, i saw the patch, let me search, warm coat, that's another way. this is how people buy things now. oh, let's google warm coats, canada goose >> for a name that's so tied to weather, the temperature, would you own this or burlington >> i think this one. they got three c's burlington has a lot of stuff

that's diversify burlington is not going to go up like this. for david, look at this thing. that's a reverse head and shoulders. this thing is on fire, people don't realize it is more than one season by the way, they have boots and even the ceo is very excited about boots. that logo on the sleeves you know it when you see it. >> my wife wears it constantly all right, take it off already >> we'll get in to the opening bell in a few moment t. have not gotten into macy's don't go away. welcome to emirates mr. jones. just sit back, relax and let us entertain you... ...with over 3,500 channels of entertainment,

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♪ come on. come on, squirt. (dog barking) whatever your financial goals are, a u.s. bank wealth management advisor can help make them a reality. talk to one today. u.s. bank - the power of possible. you are watching "squawk on the street," the opening bell in just about 90 seconds. busy wednesday, got china data over night did beat retail sales. big news may come after the bell when powell speaks to the dallas fed with kaplan. it is a q&a format, jim. we talked about whether or not he uses that opportunity to dial back what he told judy woodruff.

>> all he has to say is i am winning on houses and lumber and copper and oil these are a series of w's for me that's good. it shows that maybe after december hike, if we keep on getting w's, maybe i should pause. something like that would give him a little wiggle room but explain he does not have to burn down the village to save it. he can't say, i want to take it back, i want a do over wow, some of the stuff is following the place and i like what i hear in terms of slowing things down. >> we are also going to get kwa quarrels on the hill and how you don't want to chase the needle >> what we need is prudence.

a lot of people feel mr. powell was not prudence if you don't do that, we'll have big lay offs >> starbucks did say they'll lay off 5% of their corporate work force. we'll see more going into the new year's aft >> after the holidays, we'll have more lay offs and after the lay offs home depot and macy's highre a t of people and they let them go do we have jobs for these people is everyone going to work at amaz amazon >> no. >> let's get to the opening bell, schnitzer, the steel industry >> the new ceo talks about how things are going because of the tariffs and not being able to

get to other country and get to us pricing aings are doing well. i wish chairman powell listens to nikkei. i mean that medranan knows the agenda there are signs that these people should pay attention to they should not look at one number which is the means and wages. >> today it was. speaking of power company, pg&e saying potential malfunction in the area of the california fire. there was a utility that was not able to benefit from the surge >> a lot of people are going to utilities because they think

they are risk free like treasure si i don't want to touch any of these because a lot of unknown >> death toll goes to 50, david. hundreds unaccounted for i don't know if you have seen the picture of the coroners that are going door-to-door because there are so many missing. i think they are talking record acreage damage as well which is incredible >> it is tragic in california. talked to somebody who lost their home in malibu as well pg&e, late yesterday they did put out a filing, they pulled down their entire revolver they pulled down three and billion dollars. a lot of analysts are trying to understand what it means and how it positions itself and the historical presidents cedents. this is going to be a long

process in terms of whether or not if there is blame and how that'll work its way that got the stock down a lot to pull down all the liquidity available to the existing revol revolver >> oh, those pictures. >> there has been -- there has been utilities where they have been setback for years and years. >> yeah, i think that was video from the woolsey fire closer to the north. you see google search for air quality is just off the charts as people are trying to figure out what's breathable. let's do macy's. comp is up 3-1 you put in the framework of whether or not they could be treated better than depot. >> going back to jeff ginnette the actual progression during the quarter was very good. inventory is what i care about is low gearing up for what they think

will be a great holiday season, merchandising market is terrific and stores are looking good. i totally agree with him i know what a lot of people feel like downsizing. i think jeff is doing a remarkable job the stock is down a lot from 42 highs. i don't get that the one thing i would say is yes, the home depot issue is hanging over this. you got seasonal day tomorrow that's the best day of home depot. there is the window and the window is tomorrow this cold snap is very important. i don't think people understand. inventories are lean that means you have the right stuff in it is not going to be marked down, wow. >> speaking of really quickly of temperatures a great chart of the triple

leverage of etfs that's going from 8 to 220 in about a week. >> the reason why natural gas is going up because they have a lot of gas in the northeast. i don't bet on this snap to last 450 is too high, it will not stay up there. >> david, i would love to get your thoughts on comments, one was guggenheim saying the - the -- gundlach saying the most dangerous in his web cast. >> gundlach had a lot to say gundlach never a shortage of thoughts of all sorts of different markets. carl, let's keep an eye on

investment grade without a doubt and ge, so much of the conversation that i did have with larry culp was about liquidity and his point being they have a lot of it. any time you are talking about it, people will get concerned and it is sort of one of those subjects where you are not talking about it, you are better off. when you do, everybody focuses in on the leverage and the potential asset sales of ge. when it comes to investment grade, we'll keep an eye on it and at this point we'll wait and see if they are really any true points of weakness beyond those companies that are stressed whether it is ge or pg&e >> a lot of companies are refinanced they make money. david, how about the 92 million shares of baker hughes he traded 31.90 on average last year

they did get this deal done. that's a version of liquidity, is it? >> yeah, it is money money is money, right? it is raising it and potentially going to help reduce some leverage yeah, it is. you don't seem convinced, jim? >> i was out someone the other night, why does he not focus putting on resources he has on healthcare which is a fantastic business he knows business well dander has a fantastic healthcare business. he should be putting his chips on healthcare. i guess he's overwhelm by power and i think they have to write it off they double down at the peak of fossil fuels he's got to start talking about healthcare enough of the aerospace jewel. we all get that. healthcare is the real jewel that's the big secular grower that can shock people. finally if he needs to he cancel sell it for 40 billi.

>> it is better than thermal fisher >> so keeping the whole thing and try to turn it around for a long period of time and weather the storm and don't sell any part of anything >> right, thermal fisher is valued at $96 billion. i can argue that ge healthcare could be valued at $96 million that plan, that's -- how did that do with the comcast all he ever did was selling 20% of the goods they have to stop beating ge david, they have to do things like 499 companies do. keep the goods and stop at the sales. that's some made-up thing they did. enough of the stupid way they did things enough >> yeah, i get it and part it was also hoax that you get the stock a lot higher from where it

was at the time, 18 or 19 so you would send it up in the 20s again. that has changed double from here >> baker hughes is 31.90 >> the record is awful they should stop beating the darn cleveland browns and start trying to make the playoffs. i mean -- honest to god, that's not how business is done in the country. what is with that? why don't they join the way business is done in the country, what is it with them, david? why did culp go with that plan he's not from there. he's not from the rotten culture. >> no. he's not he was on the board starting in april, they implemented that plan and roll it out in late june he's on the board and supportive of it. i get it, jim. i understand let's just remember -- the

continuous years of buying high and selling low that really added the leverage that narrow down it did not come with the cash flow that had been promised and ending of the worse of all the deals, awesome, it seems to be basically a zero >> sell 20% of houses. sell the bad, don't sell the goods. any good portfolio managers know that >> embarrassing. culp is better than that >> david. >> watching apple, it does sound like you touch on that name and some other with malone today >> yeah, we touched on an awful a lot. we'll make the interview available as we often do as we run excerpts on it online. there is people that focused on john malone so you will get your 57 minutes worth carl, we certainly spent some

time talking about directive consumer offering that'll be coming from disney a year from now, what it will mean for that company. we circled around to apple and amazon as you may expect we did start on sort of will the disney directed consumer entertainment offering work? >> they have great brand and they really know the entertainment business what they don't have is a massive number of of global credit cards they don't have massive consumer relationship at this point those are not easy to come by. you know if you look at the other people in the space, amazon, because of their retailing businesses and creation of prime have been able to tie into consumer interest globally

and, so it is very easy for amazon to sell an incremental service. you have apple wanting to be in the space. apple is the big gorilla >> when you say want to be in the space, what do you mean? >> wanting to develop a direct consumer entertainment relationship beyond music. let's call it in the video we are estimating that apple has probably 600 to 70 millions. apple has a lot of information about consumers. they start to put money in original content and certainly having a lot of discussions around the content of the industry to figure this out. and you know they want to drive their consumer interphase technology, their ecosystem into

the video space in the living room more heavily than apple tv has so far jeff is on a role with his fire stick and prime and he's in the living room and alexa is a voice activated interphase that works well and well engineered and interphase with netflix, well engineered the technology side, if disney has a problem, i believe it is going to be those two things i believe it is going to be a technology platform and establishing those one to one consumer relationships >> all that said when i did put the direct question to him, he does say he believes disney will be the third significant entrance and successful entrance overtime in direct consumer after netflix and amazon

back to you. >> fabulous. >> the guy's tracker record is incredible i keep oncoming back thinking of the discovered and david, remember when he said he liked the 22 >> yeah. that's the trade i have seen >> he bought stock at 15 and he came back, he bought like $9 million at the stock of 15 and 40 million at 21 or 22, low 20s. you can see what's happening at discovery which is taking off as we point it out. that's a separate. that's not part of liberty that's malone himself in terms of having negative voting control in economics, forget where they are but they are significance as well >> did he say anything of cbs or viacom >> no. we did not talk about it i ran out of time so that's the one name we did not really get to, jim.

>> bezos is on a roll. where does that place -- the thinking of going into disney has been what about netflix but is the story really about what about amazon >> it is what about both of them, yeah listen we heard from malone last year, death star, reviewed that a lot and jim used that a lot. he continues to fuel amazon as the most single most powerful company out there given the breath of its offerings and what it could be and direct consumer relationships that it has. we actually did have a long conversation of netflix as well. i am not sure if we'll share that or not. he did seem positive overtime on their ability to grow into their valuation and part and their ability to raise price and pull off the gas a little bit when it comes to actually spending money. he was not -- sometimes you wonder particularly if they do

look at to generate free cash flows. he seems positive of netflix prospect more so than not. >> fascinating look forward to hearing a lot more and sirius xm let's get to rick santelli >> good morning carl the yields are up, dow are up. three basis points on 30 30-yr really have been the most solid. looking at a two-day of tens what was most lyanne expected cpi read from top to bottom did ultimately gi usve us a little lift it has cleared the zone,

3.45-ish definitely a possibility and although treasuries have been in tight ranges if we look at ours verses there, europe verses the u.s., it is at a historic 354 basis points and 10 minus 10s, when y you contemplate andthink of ho much lower rates are in europe and the notion they may be into stimulus considering some of the gp numbers receiving out of the best economies, that most likely weaken the euros the notion of carry trades, who's expensive and should some of the volatility and the equity markets dissipate a little bit that is most likely will result in a dollar index that continues to be rather firm. finally let's look at what's going on with the dollar

one week of the dollar index says it all. basically we come off 17-month highs and we are resting at 97 a very important technical level, carl, jim, david, back to you. >> all right, rick santelli, we'll see you in a bit dow is up 160 and oil is up more than a dollar, of course, after 12 sessions are down and a lot more when we come back don't go away.

tough morning for kbi ing fs companies tilray and canopy growth we'll talk to bruce linton on "squawk alley" as people start to familiarize themselves with their costs per gram, the revenue per gram. >> average selling price per gram was $9.87 tilray average price $6.21

here's the problem this was not their quarter because they were ramping up ontario had issues according to tilray what i would tell you is that, again, we can get all these different -- sold 2,197 kilogram us there canopy, 1,613 grams through tilray what matters is that canopy has the money. canopy has the constellation money and that's what you need all these companies are going to lose fortunes for a while and bruce linton will tell you, look, not like they flick the switch and we start making money so keep track of kilograms but keep track of the balance sheet. >> war chest will be key in the years to come. we'll get opst trading with jim in a minute. dow is up 160. [ phone rings ] what?!

ready for christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit!

that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. time for jim and stop trading. goldman sachs continues to elude people we don't know how to do it silence isn't golden i would say if you add up what they've been earning, you're trading through book value for the next quarter no one's ever felt goldman's books are problematic. obviously the book value, if there's cash on hand people must be thinking this is going to be billions of dollars in charges i can't get that number, i have

tried and tried and tried to figure out how high that could be i think that's off but right now because they're not saying anything, people assume the worst. >> so you'd rather not play? >> no, my charitable trust bought some because i'm a believer in goldman. i worked there i think the idea that lloyd blankfein was in the picture with the guy who run mass las m at one point malaysia was the great place to invest. sometimes you just get had so i'm not giving up on goldman that i sense everybody else is until they say something it's tough to say something. maybe the authorities are saying you can't say anything. >> very opaque story jim, what's tonight. >> six flags; we have to figure out whether there's news there we have this survey monkey which had a good quarter, then we have chuck robbins for cisco. >> he's a monster. jim, see you tonight

"mad money," 6:00 p.m. eastern time. when we come back, more of fabers exclusive from liberty media day with maffei and jim meyer. dow is up 160. ♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business.

♪ i don't like you, no, i love you ♪ welcome back to "squawk on the street," i'm carl quintinilla with morgan brennan at post 9 of the new york stock exchange faber will sit down with liberty media ceo greg maffei. the dow is trying to climb, up 160 getting strength from retail names like nike. oil is a big story. >> so are the cpi numbers which aren't as bad as feared. our road map starts with crude collapse oil prices rebounding slightly but in bear market territory we'll tell you what the fallout means for the broader markets and we'll speak with the head of commodity research. plus macy's beats the street suggesting a strong holiday quarter. we'll dig through that report of

the nation's largest department store chain. >> pot stocks getting smoked a look at what has shares of tilray and canopy falling. we'll start with the markets. stocks moving higher as tech shares rebound from sharp losses earlier this week. investors breathing a sigh of relief the latest day shows u.s. inflation is still tame. bob pisani joins us from the floor with more on what's driving stocks good morning, bob. >> good morning, great start 4-1 include advancing to declining stocks, morgan, and not far from the highs of the day. the pain trade is higher today look and see why i say the pain trade is higher. we had a tough time with industrials, dowdupont is more stable, horrible time with oil stocks, goldman is down 8%, more stable apple, you know the problems they've been having. they're relatively stable and consumer staple stocks like

johnson & johnson and coke are underperforming. that's a sign the market is more stable so the pain trade, we talk about this. what would cause the most discomfort to the most traders, i think it's higher right now. there's a lot of negative sentiment. everybody thinks things will get worse. china data was a little worse. industrial production stronger germany and japan's gdp numbers came out slightly week sore this plays into oh, the global economy is slowing down. that is one of the reasons it's hurting things so remember the two things that move our markets the fed and inflation and tariffs. we moved 10 points on the s&p futures on the better cpi number then there was talk, confirmation we may have a delay in auto tariffs. that helped as well. wild card, we'll watch powell speaking after the close in dallas maybe he'll sound more dovish.

autos largely on the upside. they were better in europe daimler and bmw were stronger. gm was up and porsche up 2%. just a quick comment on this weird bizarre thing going on between natural gas and energy, this is unusual. look at the chart. you see natural gas on the orange there's oil on the bottom here you don't get that happening very often it's not just that we got cold weather and oversupply, there's a real problem out there this looks like there was a big pair trade, long oil, short natural gas. long oil because it was in equilibrium, short natural gas because we weren't going to get cold weather regardless. there's a big trade going unwound and that's impacting the stock market you can see what this is doing to oil service stocks. i think that's a historic low.

noble energy, transocean, all the guys out there that provide services to the oil industry are just getting decimated this is a one-month change we're seeing so there's one big decline but right now sitting right near the highs, 135 points for the upside. >> bob, thank you very much. those possible production cuts by opec sending oil high they are morning prices rebounding after concerns over surging supply for from saudis, russians and the united states coupled with continued concerns over iran, leading oil prices down firmly in bear market territory jeff curry joins us today, goldman sachs global head of commodities research to talk more about what the future brings good to have you your note today goes into all kinds of things like negative gamma which we have to break down for the audience. what are you saying? >> there's a fundamental story and a positioning story. the positioning story is dominant in both natural gas as well as oil. but let's go over the fundamental story. on oil it was initially about demand concerns. i think those are overblown.

i think most people would agree with that point. the real concern is about supply those are real we've seen a bigger-than-expected rise out of iran libya is delivering better than expected and so is the u.s this put sergeant to a million barrel per day extra oil which was why opec is talking of a production cut then we had the white house chime in and there's uncertainty about that it doesn't justify a 20% pullback in oil prices there comes into the positioning story. a couple things there. one, momentum strategies have a much larger impact on commodities than historically, we had 13 down days in oil, 17 down days in copper earlier this year which shows momentum strategies are dominant here once we got do $55 a barrel where the cost of shale is, we got where the puts were struck for hedging programs

once you went in there, swap dealers needed to hedge their position. >> how long can that environment last are we in for months, years? >> historically three to four weeks. the one advantage we have here is that the volatility in the last couple days will discourage the momentum players they'll leave. they like markets trending up or down you take away the momentum players, then you need the physical catalyst. what's the physical catalyst opec production cut is a high likelihood historically you bounce back up to where we were before. our target for first quarter, $75 a barrel on brent. >> i want to go back to iran for a minute because these waivers involving the iran sanction seemed to be the thing that triggered this fast-and-steep swoon but the u.s. signalled maybe those waivers will go away and this is their way of

tapering so you don't see a big spike. >> i agree and you look at when pipe capacity comes online in the u.s., it's a mid-to-late 2019 story when do these waivers expire 180 days from now so the timing is perfect so i agree with your assessment >> your thoughts on the other commodities and how those are moving i think back to 2015 for example when you saw oil prices greater, you saw other commodity prices crater, are we seeing anything that would concern you about a future recession >> while we did see energy join the metal pack, what about the china story? that's key to the industrial outlook you have to look at where the policy put is struck on chinese growth. relatively 6.1% high frequently

indicators suggest that china is under 6.1, we saw a big number in terms of tcf on infrastructure that's the physical catalyst we need to get markets moving higher. >> so what is your base case on g20 and how does it affect oil or commodities in general? >> well, i think in terms of the potential there is just an agreement that if we look at the situation with iran i would argue the idea is we don't want to see disruptions on potential letting prices get too high which is why i buy into the view that, hey, it will be a much slower process i think when i was on here last time we argued that, hey, taking iran to zero was extremely unlikely it was too disruptive. i would argue that a more subtle

approach is more appropriate. >> the things we're saying about the crude market, what about nat gas? >> it was cold out however, positioning is the one that's been dominant why do we know that? march contract is the one driving this thing right now it's outperformed january by 25 cents. it's outperformed april by about 50 cents why is that important? it's a non-expiring contract historically it hits the fundamental story and we go to the upside the real big move is positioning. with all of these we have to wait to subside in terms of oil as well as natural gas. >> nat gas at $4.50. does that make coal more attractive to power plants and others that would be consuming others >> absolutely. i got questions are we getting near oil the answer is no, we'll not

substitute against oil but i think your point on coal definitely we've moved above the coal. >> and what would you tell viewers who are reading these stories that want to marry oil and what happened over 12 sessions to investment grade credit ratings, junk bond, high yield. >> had an impact you really have to push wti below $50 a barrel then it gets non-linear in the credit space as long as we stay in the 55 range, where we've been trading in the last day or two, you're relatively safe. but that non-lynn arenon-linearc up eventually the momentum will be upside. >> jeff, you always bring it thank you so much. jeff curry, goldman. when we come back, faber's exclusive with liberty media's greg maffei. plus funds managing $5 trillion

pressing the firearm industry to accept new principles on gun safety the man spearheading those efforts will be with us to discuss that and more. w u112. (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.

[ready forngs ] christmas? no, it's way too early to be annoyed by christmas. you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. welcome back to "squawk on the street," i'm david faber at the liberty investor day who better to have with us than the ceo of liberty media, greg

maffei it's been a a year, i'm a little upset about that. >> i'm sorry, david. >> you had your presentation inside liberty itself made up of formula one, sirius, the atlanta braves but you have stocks that track the performance of those various assets and many of them trade at discounts. this is what i hear from your investor base, the discount, the discount are you going to do something to reduce it. will you buy in sirius what do you say when you get this chatter ant these discounts. >> a couple things first we're interested in long term investing and the performance of the underlying companies. generally those discounts sort themselves out over time but we take actions to take advantage of the discounts, for example as you noted liberty sirius trades at a 30ish, 28 something like that discount to the underlying sirius xm stock.

we they's silly, we try to buy back the liberty sirius stock. so if sirius today is trading at 615, something like that, the price we paid for the liberty sirius stock shows a look through price of $4.77 per share. we like that. >> i would bet you do. there was a time when you made an offer to buy it in? it didn't work out would you revisit that >> absolutely. we're disciplined. so using liberty serious stock which trades that the that big discount and have to pay a premium to have been the sirius stock seems like a losing strategy for our liberty sirius shareholders so we'll wait for the right time or do something different but i doubt we'll buy it

i'm confident we won't pay a big premium for sirius. >> i want to talk a bit more about that we have liberty formula 1, series a up -- >> we don't call that. fwok that's how we call it. >> what is going to go on in the united states. are you guys making progress in the hope of bringing what has been a largely european support into the u.s.? >> that's been one of our key goals. one could say the prior management's team was focussed on short term results. getting venues that would pay you money but didn't build the long-term health of the sport were emphasizes with respect to what we hoped to do which is grow the united states we've had positive discussions in miami, las vegas. places that would complement the

race that we have at circuit of the americas in austin we've moved to espn, getting far more exposure on espn, on abc, on espn 2 and pushing our own ott product in the u.s. >> where does that stand pushing your own ott product the idea of a subscription service for people who love this car racing >> we'll have free to air which could be on abc, we'll have pay which could be in the united states on espn but in markets like that uk or b sky b. but we'll build two kinds of digital product tchblg aal prod. we launched one in may, it's in beta we have cameras in all 20 cars, we have tons of data, we hope to build a product which is differentiated and show real fans a on the of differentiated material that they can only get

on the ott product the other point is i think over time you'll have over-the-top digital players, the amazons of the world, bid on our content. they've become major players in the video space and i expect we'll be beneficiaries as well. >> i know part of your presentation you prodly speaking said the content business -- i won't quote you directly but it's not the best. what do you mean by that >> scripted content is a very crowded space. there are many kinds of competition for attention. 24 hours a day, screen time increased dramatically but there are many things competing. and scripted content has many new players whether it be netflix or amazon or apple enter. when you add what some people

estimate what could be $100 billion on original content. >> $100 billion? >> yes how do you get a return on that? you can see how it adds up he was in will be 12, amazon will be 15. >> amazon will be 15 what >> that's what people estimate. >> eventually. >> next year. >> wait, amazon is going to exceed netflix next year they don't tell us their budgets. that's an estimate of some observers. but the rumors about what they'll spend on "lord of the rings" you can see how they can get there easily so when you have that kind of spending the right question is how does someone get a return on that capital that makes it a crowded space. >> you mentioned apple as well when you brought this up and so did john malone. is apple going to become a serious player in terms of buying content >> we'll see

they're clearly ramping, they spend $20 million on a 30 minute segment on car pool karaoke. what traditional content player could justify. that but if you're apple with 1.4 billion devices out there and the opportunity to sell the 1.5 billion device, it makes sense. they compete on a different set of tomorrows they know what they're doing but it doesn't make it simple for traditional players. >> let's get back to radio because i realize we sad here for some time and i haven't asked you about pandora. finally sirius xm bought it. are you happy with where that stands it hasn't closed yet but in terms of what it will represent as a value >> absolutely. >> why >> it opens up a ton of possibilities for us first, half the listening in the united states is in the car, sirius is very powerful in the car. the opportunity to bring pandora is important but half the

listening is outside the car and the opportunity to leverage the 70 million monthly uniques pandora has, perhaps move them into the sirius ecosystem, the opportunity to cross sell our content into the ecosystem, the opportunity to leverage their superior add expertise, the opportunity to leverage our shared digital and technology investments, there's a on the of things we can do we're happy roger lynch and his team will join us. >> sounds like a lot of opportunity. >> we'd like to think so i is iheartradio another opportunity? you do own some of the debt, correct? is there a possibility that you could get bigger in it and/or even do the whole thing? >> i think it's a complicated situation, as you note we bought debt when they entered their chapter 11 filing. they're currently negotiating their way out of that. if the deal on the table stands we'll own a small percentage -- our debt will convert into a

ma small percentage of the equity i don't think we'll be more than 5% but we'll see we tend to be long term. >> but opportunistic look at xm and how you got in there. >> we'll see how it trades, where it goes is and we'll make our decision >> regional sports networks that will be for sale or are for sale from disney, some would think liberty is an obvious potential candidate. are you interested >> as you rightly point out, not only does chase them roh them well, liberty was prents sent al of them when they were created it's a business that is challenged other time as the bundle loosens but it's one where through charter logically districtors should have a role or as a content owner.

as you pointed out, we tend to be opportunistic we'll be thoughtful. >> john said he thought they might go for eight times that seems opportunistic given they were sold toll disney. >> we'll see where they trade. >> are you watching it carefully? >> absolutely. what do you think happens? do you think fox ends up buying? >> i'll take the under but maybe. that's like betting the field. >> i just mentioned it will be one of the larger deals. finally cbs and viacom you've watched that from afar. >> small shareholder in viacom. >> national amusements, do you ever think about the possibilities there? >> i don't think there's a role but i bet they'll get together. >> i agree

greg maffei, ceo and president of liberty media also on a lot of boards. how many boards? >> it's a state secret. >> all right >> i am iss's poster child for what's wrong with america. >> more boards than any other person in america right here back to you guys. >> macy's stock falling down 2.5% despite reporting a beat in terms of estimates and raising its full-year forecast, calling for a strong holiday quarter check out the major averages at this hour, all hanging on to gains, though off highs of the morning. the dow is up 69 points, the, is and px is up 8 and the nasdaq is up eight more "squawk on the street" after this

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today's highs. its top holding apple receiving a downgrade and a price target cut. chip stocks are rallying, continuing the rally we saw from yesterday as nvidia and applied materials get set to report. carl, important to keep in mind nvidia is up 91% for the year. >> is that right nvidia year to date >> year to date. >> interesting apple below 190 is getting people's attention when we come back, market volatility reins supreme a lot more from david's explosive from john malone got a death cross on the russell and the dow's gains have whithered to 53. it's time for sleep number's veterans day sale

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. good morning, i'm sue herera theresa may and her cabinet ministers gathering to discuss a draft brexit deal with the european union this as she triesto persuade her divided cabinet to back the agreement, just as she did earlier with lawmakers and parliament. >> as i have said all along throughout these negotiations, what we are doing is negotiating a good deal for the united kingdom. [ laughter ] we're negotiating a deal that delivers on the vote of the british people, that takes back control of our money, law, and borders. >> world leaders, including vice president mike pence, attending a gala dinner at the asean summit in singapore. the host, singapore's prime

minister, inviting them to let their hair down just a little bit as they took a break from negotiations and christie's has sold this beautiful pink legacy diamond at auction for more than $50 million, including commissions and fees it's a world record price per carat for a pink diamond the buyer was the renown jeweler harry winston. it's kind of a neutral, it goes with anything, i think that's the news update at this hour i'll send it back to you, guys. >> i don't know, i'd be afraid to wear in the public. what happens if i lose it or something? >> it's a large stone but it would look great on you. >> you, too, thanks. welcome back to "squawk on the street." i'm morgan brennan along with carl quintinilla live from post 9faber is with us. let's get a check on where we stand on the major averages.

still higher though off the highs we saw earlier in the session. the dow is trying to post gains for the first time in four sessions, s&p is up six points led higher by energy and industrials and the nasdaq is up fractionally about a tenth of a percent. >> funds managering close to $5 trillion are pushing the civilian firearm industry to accept a new set of principles on gun safety including technology, education, training and sales practices. spearheading that effort is the man who manages the world's largest educator only pension fund chris, good to have you back, good morning. >> good morning, carl, good to see you. >> you don't own any gun stocks per se you have retailers like walmart and dick's but what are you after? >> we're after trying to get the industry to stand up band a safer more responsible industry. i think it's like guests said

earlier in the automobile industry you didn't outlaw cars, you mandated seat belts. there are safety measures we're calling on the industry to step up and we're calling on every level of the industry, manufacturing, distribution, finance and sale to step up and be more responsible. >> you say you're not making a political statement about constitutional rights but i imagine you have to be prepared for any backlash to this, right? >> there's no question there will always be backlash but we need to have an honest dialogue we need to stop going to the extremes and come to the middle to more reasonable and what we think are sensible solutions and safety measures that need to be put into place the background check and things like that need to be modernized from where they are. safety feature, serial numbers to help the police identify weapons, just common sense things we think the industry

needs to have a dialogue about instead of this separation that we have right now of one extreme or the other every time people mention the word "gun control" sales go up that's not the solution. it's a dialogue and we at calstrs have been about talking to people, having a dialogue and trying to bring about change and now we have a group of large institutional investors, almost $5 trillion of assets and i think that number will grow starting today. >> what's the timeline for these changes and what's the methodology that you want to see implemented here how would you sort of grate tho -- grade those changes and how they're implemented. i ask because this is a tricky thing since gun laws are on a state-by-state level what are you looking for when you say best practices and background checks? >> we're patient we're long-term capital. i have a 30-plus year investment

horizon. as long as there are public educators in the state of california, we'll own many of these stocks so if you have that long term perspective, i'm going to stay at this time and time aga again. dedon't expect change overnight but when social media kicks in, when the nation gets active on this issue i'm amazed at how ceos respond so we want to have the dialogue and in the moments ceos are ready to listen and have a talk, i think there's common sense things that can be put into place so we'll stay at this. our board adopted firearms as the number one engagement issue for us for the next five to ten years. so we're going to stay at this and stay steady. what am i looking for? i'm looking for more institutional investors to rally around this and to have that dialogue with this industry to give ceos practical things they can implement that are realistic

and balanced that respect gun owners' rights because there are gun owners that want to see this industry take up a more responsible stand. a safer, better product. >> i think viewers understand that, chris. we'll keep track of that initiative meantime broader 30,000 feet market chat. we're running into these conflicts between fundamentals and whether it's the dollar or powell or trade or peak earnings growth versus what should be a good seasonal time of the year does santa show up here or not >> yes santa does show up i think you'll see a santa claus rally but there are concerns all over the world and in the usa. you hit it all the time. the market is long in the tooth. it doesn't die but people worry the federal reserve could kill it or presidential tweets could kill it. i think as long as the economy

is healthy, we'll have a strong christmas season we're looking into 2019 and it's back to that slow steady climb of a market. i would haven't expected huge double digit return bus we'll still have at least a positive tilt to the market volatility is back and here to stay gone is the early 2017 where the market was flat. we're now in a roller coaster environment where when it drops it drops down the elevator shaft but claims back up slowly a set of stairs. i know we're a bit defensive tilting i guess i would say and i think a lot of peers i talked to are also a bit defensive, worried about the volatility and the down side. >> before i let you go, when you say you're more defensive tilting, does that mean you're making changes to asset allocationing? are you 53% in equities or

looking at bonds increasing or something else >> margaret. i tease you guys, we're not fast money so we're not going to be on melissa lee's show. we're the opposite we're slow, patient money and my best analogy would be we'll stay focused on equities. we won't shift the asset allegation but we'll batten down the hatches and prepare for rough tseas so i won't call out our trades on tv but we're tilting towards what we think are defensive strategies, taking profits where we can, the regular et state market is priced to perfection looking for a few opportunities but i think everybody recognizes there's few parts of the world that are cheap and the parts that are make your nervous because there's more story to play out there so it's a watch and see. i'd recommend for retail investors to rebalance their asset allocation

a lot of them find themselves overweight equities. it's a good time to rebalance and the key word is balance. stay balanced in your investment portfolio. >> always good to talk with you about the markets. let's get over to david faber as we said earlier at liberty media's investor day david? >> thanks, carl. earlier today i had a chance to sit down with john malone, the man who helped create the overall company and the chairman who sits on nine boards of directors. always like to talk to john about it a variety of things in the larger media business and about deals themselves, something he's no stranger to we talked about globalization. it's been a key them of his through the years. in particular we talked about our parent company, comcast's decision to buy sky and we went on as well to talk about a deal that didn't happen last year, namely the sale of charter communications of which malone

and liberty own more than 20%. the first question that i asked was did comcast get a good deal in purchasing sky. >> they have great brand, there's no question and they really know the entertainment business what they don't have is a massive number of global credit cards. in other words they don't have massive direct consumer relationships at this point and those are not easy to come by. if you look at the other people in the space, amazon, because of their retailing businesses and the creation of prime has been able to tie in to consumer interestings pretty globally so it's very easy for amazon to sell an incremental service. you have apple wanting to be in

this space apple is the big gorilla. >> when you say wanting to be in this space, what do you mean >> wanting to develop a direct consumer entertainment relationship beyond music. let's call it into video and i -- we're estimating that apple has probably -- >> carl, we aired that earlier, you may recognize it, we were talking about disney and apple and amazon i do believe now we have what i was referencing which was the decision by comcast to by sky a good deal. >> brian will shoot me if i say no he paid a lot of money for sky i think the proof is going to be how he goes the bulk of the sky business is uk and the bulk of the uk business is a

satellite-to-consumer business he has to make the transition from satellite description to internet transmission over time. >> it seems to have passed do you for now -- >> for now. >> do you regret it passed do you regret there was abopportunity that wasn't seized given the stock is 328 right now.an opportunity that wasn't seized given the stock is 328 right now. >> you're always worth more dead than alive in the business world. on any given day you can usually sell a company for more than its market trading value so in the short run would that have been something to pursue and if we owned -- instead of a 328 stock we had $350 worth of verizon stock, would we be better off? would the future be righter?

i don't know i think clearly some of us on the board and in the company thought we should have more aggressively pursued some of those interests. i can tell you that the deals that were on the table would not have gotten anybody's support. so verizon would have had to get more aggressive for that deal to have had any chance. the problem with the overture was it wasn't deemed to be equal for all shareholders and as a result some of us felt that a, it would be awkward to propose it. >> at the same time -- >> do you think a t-mobile/sprint wanting to go into -- just look forward a few years. if it turns out that 5g is an

attractive -- involves to be, demonstrated to be an attackive fixed solution, charter will have a maur which you aring high speed powered local network in the part of the world it serves. very incrementally positive to add a 5g on that-to-that platform. >> right now hans vestberg who is running verizon is focused on 5g and they've been rewarded in the marketplace for doing so >> well, let me point out, charter is trading at, what, 9.1 times. comcast attributed to that because maybe seven. tom is being rewarded for a clear pure play leveraged cash flow growth buyback story.

not experimenting over here, not trying to buy a content company. so charter is currently, and the charter shareholders are currently being rewarded the same way -- with premium valuation and a big buyback program that gives liquidity to its shareholders now that is not my traditional way of building a business but it's tom's and it's working. >> and you believe there may be another opportunity to revisit if it makes sense a sale of charter at some point? >> correct. >> and perhaps tom will be in a different place in terms of his view of value as well? >> yes and, you know, tom is a terrific operator, right? so he's got a very clear vision. this is a stage where top is basically saying don't bother me

with all this other stuff. i've got this focus and this strigs and this challenge and i've got to get this done and once i've got that done then you guys, you naysayers can say now whatshould we do but if i don't get this done everybody will be disappointed so i think for that board, in a year, two years this there will be a big question. now what now we're generating this big free cash flow are we going to have an opportunity to steal an nbc universal from somebody like brian did? >> really. >> yes, really i mean, you don't know, timing, timing, if you have dry pouter -- >> are you trying to get brian to split the company

>> no i'm talking about him being brian. i think he made a fabulous transaction. >> always a good place to stop, saying that our boss made a fabulous transaction carl, back to you. >> david, thank you very much. as we go to break, pot stocks getting hit hard what has tilray and canopy growth falling between 7% and 9% plus we'll talk to the ceo of canopy as the dow is up 77

small cap stocks are nearing a death cross. if that sounds scary, well, it is find out why it could signal trouble for the broader market on tradingnation.cnbc.com. more "squawk on the street" is coming up.

earnings central, a rising number of s&p 500 companies citing inflation in their earnings calls our steve liesman joins us with more on the top reasons cited for rising prices. steve? >> carl, inflation has been a big headline we wanted to know how big?

so what did we do? we counted we looked at 425 earnings calls and looked for the word "inflation" and here's what we found. going back here now, it's up to about 33% of the 425 that's 141 companies you can see it started to tip up around the end of 2017 towards the beginning of 2018 when inflation increasingly became mentioned. now, inflation is always mentioned. in fact the ten-year average for these companies is 26%, so about 7 points higher than it was. where they're mentioned, they're mentioned in materials, in wages and also in transportation costs. now let's look at the sectors that mention inflation the most. consumer tape staples number one 65% of the companies using the word "inflation," industrials 64%, materials 57% health care, communication services, info technology. here are some of the comments that have really raised concerns

in the markets about inflation ppg said we experienced increase raw material and logistic cost inflation in the quarter, with the third quarter representing the highest level of cost inflation since the trend began two years ago. kellogg said the most inflation has been around the transportation area. year to date we have been offsetting a pretty high input cost inflation through productivity mattel, we have delivered meaningful improvement in the bottom line performance in spite of the increased inflation and cost of raw materials and plant labor. that tells you that top line growth can get rid of some of those problems so carl, inflation is out there, it's out there more than it was in the past, but how to invest with it is a different story because of how companies are dealing with these rising prices carl. >> something to watch along with inflation expectations, which might say something else steve liesman, thanks.

"squawk on the street" is back in a minute.

a lot more when we come back apple is back below 190 on some downgrades and some decreases in iphone sales estimates that's helping the dow go red by about 15 points.

plus, canopy growth ceono the company's results. that stock is down "squawk alley" starts in three minutes.

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wall street, and "squawk alley" is live. ♪ good wednesday morning, welcome to "squawk alley." we begin with apple today down over a percent it's fifth straight day of losses guggenheim downgrading the stock. ubs cut its estimates and price target as well the stock down double digits over the past month and on its way to being down the seventh week in a row. rob